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A V The reduction in annual depreciation char gas correspond® to the approximate rates used In setting depreciation up for the distributing company and are the rates used by Omaha in computing the accrued depreciation. In my opinion the 1.3 and l.Q$ rates are too low. Rates predicated on lives ranging from 50 to 7© years will be sufficiently low in my opinion. However, if the rates are increased, the deduction for depreciation, will be Increased* the water production properties will be challenged Inasmuch as there is no special assessment made against these properties and no taxes paid as such. There la no (gueetlon bat what such taxes are proper to elalm, but If such results In additional tax payments by this Company, there probably would he no advantage In pressing that position. ^ A property tax of #4800 is paid the City of Las Vegas, which Is understood to arise from an assessments on the 1250 acres of land. At the present time this payment la not charged for in the water billing to the LVL&lCo. In the estimates made, this amount has been reduced in the relation of 400 acres to the 1250 acres, or to #1561, and Included in the cost of water. The other items probably need no comment. Other Expensesi The item of #25,000 for operation and maintenance likely inclusion of an ad valorem tax on does not need to be discueeed at this time. It is planned to have a break-down of this figure for support.